| Introduction | In response to the Ministry of Housing (Motivating Building Technology) and the National Industrial Development and Logistics Program, which aims to provide the best housing solutions for home ownership and reduce the cost of construction, in addition to the speed of implementation with high quality, in order to create suitable jobs for citizens in the construction sector , Alian Industrial Company, which is wholly owned by Alkathiri Holding Company, has received the initial approval (letter of commitment) from Saudi Industrial Development Fund to finance the establishment of a factory working in Italian technology for the production of reinforced polystyrene sheets reinforced with iron and concrete as per the following: |
| Date of receiving Credit Facility | 2019-06-17 Corresponding to 1440-10-14 |
| Creditor | Saudi Industrial Development Fund |
| Credit Facility value | 23,200,000 SR |
| Credit Facility duration | The loan will be repaid in 12 semi-annual installments, starting from 15/10/1443H over a period of seven years |
| Guarantees provided for credit facility | Mortgage on all the fixed assets of the project and corporate guarantee from Alkathiri holding co |
| Reason for Credit Facility | finance the establishment of a factory working in Italian technology for the production of reinforced polystyrene sheets reinforced with iron and concrete |
| Related Parties | No related parties on this agreement |
| Additional Information | Estimated cost: SR 32,160,000.SRProject financing: 75% through the Industrial Fund, 25% self-financing from the company.Production capacity and sales: The total production capacity at 100% of the actual operation of the plant amounts to (1,300.000) one million and three hundred thousand square meters per year at the rate of 1000 housing units annually. This percentage will be achieved gradually during the three years following the first operational year with an estimated average sale of 60,000,000 SR in the third year, The selling capacity of the first year with an average sale of SR 30,000,000 is 30 million riyals with a rate of operation of 50% of the total production capacity of the factory .Manufacturing technique used: Polystyrene sheets supported by iron and concrete.Manufacturing mechanism and technology: The technique of producing three-dimensional concrete slabs.Expected date of establishment of the plant and the beginning of production: the first half of 2020.Area of the factory: It will be built on a land area of 12,308 square meters and obtained from the Industrial Cities Authority (cities) with a rental value of 25 thousand riyals annually.Financial impact: to be determined later.It is worth to mention that the technology of producing the three-dimensional concrete panels is very developed and sophisticated. Also, it is an alternative for traditional construction methods with a cost and time savings of 30% from the traditional way and process of construction.In addition of its flexibility in the enforcement modern architectural designs, which can be used in various areas of residential units, commercial buildings, as they achieve the highest standards of efficiency in acoustic and thermal insulation, knowing that this Italian technique is used in all countries of the European Union and the United States of America.Alkathiri Holding also wants to clarify to its shareholders that any further developments related to the establishment of the new plant will be announced. |
